TIDMAMED
RNS Number : 1884R
Amedeo Resources PLC
23 October 2013
Amedeo Resources Plc
Interim results for the six months ended 31 July 2013
Amedeo Resources Plc (AIM: AMED) ("Amedeo", the "Group", or the
"Company"), the resource and resource-infrastructure and asset
investment company (previously known as Creon Resources Plc), today
announces its interim results for the six months ended 31 July
2013.
Period highlights:
-- Net profit of GBP245,000, (net loss of GBP317,000 for the six months ended 31 July 2012).
-- First rig order, Le Tourneau Super 116E Class rig, specification and price increased.
-- Acquired 49% of MGR for US$49,900, and received first dividend of US$210,000 (GBP138,000).
Post - period highlights:
-- Jiangsu Yangzijiang Offshore Engineering Co Ltd ("YZJOE")
"strikes steel" on Le Tourneau Super 116E Class rig.
-- Board strengthened.
Glen Lau, CEO of Amedeo, commented:
"We are pleased with the progress we have made at Amedeo having
achieved a significant turnaround by posting a net profit in the
first six months of this year compared to a net loss in first six
months of last year. Firm foundations have been laid and our
investments are progressing and paying dividends. As we continue to
build Amedeo, we are now exploring opportunities in the verticals
associated with our investments."
Full copies of the unaudited interim results are available to
view and download from the Company's website:
www.amedeoresources.com.
For further information please contact:
Amedeo Resources Plc Glen Lau Tel: + 65 6224 6766
Tel: + 44 (0) 20 7583
8304
Zafar Karim
Tel: + 44 (0) 20 7583
8304
Daniel Stewart & Company Paul Shackleton Tel: + 44 (0) 20 7776
Plc 6550
Beaufort Securities Limited Guy Wheatley Tel: +44 (0) 20 7382
8300
Newgate Threadneedle Graham Herring Tel: + 44 (0) 20 7653
9850
Adam LLoyd
Tel: + 44 (0) 20 7653
9842
Amedeo Resources Plc is an investment company whose policy is to
invest principally, but not exclusively, in the resource and
resource infrastructure and asset sectors. Amedeo has a deep and
broad global network and wide contact base in these sectors,
including in East Asia, South East Asia and the Middle East which
it leverages to source and make investments. These sectors exhibit
high growth and are strategically important. Amedeo is a proactive
investor which assists its investee companies to grow by providing
investment, expertise and contacts.
DIRECTORS' REPORT
Introduction
Amedeo continues to build upon the foundations laid last year.
During the period, progress continued apace at YZJOE, the new
offshore rig building yard. An investment was made into ferrous
metals broker MGR Resources PTE Ltd ("MGR"), which has already paid
its first substantial dividend. After the period end, the Company's
Board was strengthened and latterly, the Company name was changed
to Amedeo Resources Plc. The necessary components to build Amedeo
into a significant resource, infrastructure and asset company are
in place. The Board looks to the future with confidence.
Operational review
YZJ Offshore
Amedeo's largest investment is its 46.5% stake in YZJ Offshore
Engineering PTE Ltd ("YZJ Offshore") which has a 40% stake in
YZJOE, the new offshore rig building yard.
In December 2012, we reported that YZJOE had secured its first
rig order of US$170m for a Le Tourneau Super 116E Class
self-elevating rig scheduled for delivery in mid-2015. Progress on
the rig is proceeding to schedule, and the customer is pleased with
both the rate and quality of the build. In July, with the
customer's confidence in YZJOE's ability growing, it increased the
specification of the rig, with a corresponding increase in price to
US$175m.
In late August, we reported that YZJOE was ready to "strike
steel" on the Le Tourneau Super Enhanced 116e Class self-elevating
rig. This followed several months of detailed technical engineering
work. The rig is being built to the most modern and stringent
international engineering standards.
Rigs of this type, which are able to go deeper and are more
efficient, are in short supply and in high demand, particularly
with the oil majors. Discussions are already underway with a number
of potential new customers for potential new rig orders.
Progress on building the YZJOE yard also continues on schedule,
with wharf building expected to commence shortly and the slipway
expected to be completed around mid to late next year.
The macro environment for offshore rigs is buoyant. Based on
current stock, rig build pipelines and the phasing out of existing
rigs over the next few years (it is estimated that over half of the
current fleet of offshore jack up rigs is over 30 years old),
undersupply could be as much as 200 rigs by 2020. In addition,
offshore activity is expected to expand as onshore fields are at,
or past, their peak.
MGR
As reported in April 2013, Amedeo invested US$49,900 for 49%
equity interest in Singapore based MGR. Amedeo also provided a
three year unsecured 15% convertible loan to MGR of US$1.95 million
to assist MGR to increase its trading operations. Since the
investment, Amedeo has provided various services to MGR including
assisting it source and secure contracts.
We are pleased to report that, with Amedeo's help, MGR is
performing well and is building a reputation for sourcing and
amalgamating ferrous metals from a variety of sources. Indeed, MGR
made its first dividend payment to Amedeo of US$210,000
(GBP138,000) at the end of July, just before the end of the period
under review. Further payments are expected from MGR in the second
half. Furthermore, Amedeo expects to charge MGR for the services
that it has been, and is, providing to MGR.
MGR, again with Amedeo, is in discussions to source long term
iron ore supplies with attendant vertical supply chain and economic
benefits. MGR is also studying opportunities in the chromium,
nickel and copper markets.
Financial review
Amedeo recorded a net profit on ordinary activities of
GBP245,000 for the six month period compared to a loss of
GBP317,000 in the corresponding period last year.
Revenue of GBP1,000 (2012: GBP nil) was recorded as a result of
providing various services to YZJOE. Gross costs were also GBP1,000
(2012: GBP nil). Administrative costs were reduced by 21% to
GBP193,000 (2012: GBP243,000). Non-cash share based payment charges
amounted to GBP12,000 (2012: GBPnil).
Amedeo's aggregate share of net losses from its associates was
GBP14,000 (2012: nil). YZJ Offshore's loss for the period was
GBP152,000, which is in line with the share of loss of GBP148,000
recorded in the period from the date of Amedeo's investment in YZJ
Offshore in July 2012 to the end of the last financial year in
January 2013. Pleasingly, Amedeo's share of MGR's profit for the
period was GBP138,000, all of which was distributed by MGR in the
form of dividends shortly before the end of July.
Further payments from MGR are expected to be received in the
second half of the year.. Amedeo, has been providing significant
input into MGR's operations and business development such that
Amedeo anticipates receiving revenues for management services in
addition to dividend income from MGR.
With the depreciation of the US$ against the GBPSterling during
the period, there was a foreign exchange gain of GBP464,000 (2012:
loss of GBP74,000) primarily due to a gain on the Group's
investment in YZJ Offshore. While the gain is welcome, the Board is
considering hedging against future currency movements.
Overall, as mentioned above, Amedeo recorded an unaudited profit
on ordinary activities of GBP245,000 for the six month period, a
significant turnaround from the loss of GBP317,000 in the
corresponding period last year, resulting in a profit per share of
0.01p (2012: loss per share of 0.03p).
The Group ended the period with net assets of GBP11.5 million
(Jan 13: GBP11.2 million), principally comprising the investments
in YZJ Offshore of GBP9.8 million (Jan 13: GBP9.5 million) and MGR
of GBP0.03 million (Jan 13: nil), together with loans made to MGR
of GBP1.3 million (Jan 13: nil) and net cash of GBP0.5 million (Jan
13: GBP1.8 million).
Liabilities at the period end were GBP0.2 million (Jan 13:
GBP0.08 million), all of which have now been paid. Net asset value
per share as at 31 July 2013 stood at 0.42p (Jan 13: 0.41p).
Board changes
A number of Board changes were made post the period end. In
September, Mr Zafarullah (Zafar) Karim joined the Board as an
executive director and Mr Philippe Petitpierre joined as a
non-executive director. Mr Guus Berting and Mr Aamir Quraishi
stepped down as non-executive directors during September. We would
also like to take this opportunity to thank Guus and Aamir for
their services to the Company.
Zafar has over two decades of business and financial experience,
including investment banking, investment and risk management,
financial strategy and growing and restructuring companies.
Philippe, a Swiss national, has a wealth of experience and
expertise in the energy sector. He represents Switzerland on the
Board of IGU (International Gas Union) and is a member of the Board
of Directors of EUROGAS in Brussels. Philippe is also vice-chairman
of the SWISSGAS Company and of the Swiss Gas Industry
Association.
We are delighted that both Zafar and Philippe have decided to
join the Board of Amedeo as we continue to grow.
Change of name
Post the period end, on 17 October, as part of relaunching the
Company, shareholders approved a change of name from Creon
Resources Plc to Amedeo Resources Plc.
Outlook
Amedeo has built upon the foundations laid last year. The
current investments are progressing well and, in the case of MGR,
already paying dividends which are expected to be recurring. With
both YZJOE and MGR performing well, Amedeo is exploring ways to
take advantage of vertical opportunities associated with its
investments. Additional opportunities in the resource sector,
including the renewable sector are also being explored.
Following our relaunch, we expect progress to continue at an
increasing rate and look confidently to the future.
AMEDEO RESOURCES PLC
Group statement of comprehensive income
for the six months ended 31 July 2013 (unaudited)
6 months 6 months 12 months
Note ended ended ended 31.1.13
31.7.13 31.7.12 GBP'000
GBP'000 GBP'000
Revenue 1 - -
Cost of Sales (1) - -
______ ______ ______
Gross profit/(loss) - - -
Administrative costs (193) (243) (594)
Share based payments 1 (12) - (150)
Share of profit/(loss) of associates:
YZJ Offshore (152) - (148)
MGR 138 - -
____ ____ ____
2 (14) - (148)
Foreign exchange gain/(loss) 464 (74) (202)
______ ______ ______
Profit/(loss) from operations 245 (317) (1,094)
Financial income - - -
______ ______ ______
Profit/(loss) on ordinary activities
before taxation 245 (317) (1,094)
Tax on profit/(loss) on ordinary - - -
activities
______ ______ ______
Profit/(loss) on ordinary activities
after taxation 245 (317) (1,094)
______ ______ ______
Profit/(loss) per share 3 0.01p (0.03)p (0.07)p
Consolidated unaudited statement of financial position
As at 31 July 2013 (unaudited)
As at As at As at
Note 31.7.13 31.7.12 31.1.13
GBP'000 GBP'000 GBP'000
Assets:
Non-current Assets
Investment in associates 9,824 9,779 9,517
Investment in unquoted preference - 20 -
shares
Loans made to associates 1,284 - -
_____ _____ _____
11,108 9,799 9,517
Current Assets
Investments in quoted shares 4 4 4
Investment in unquoted preference
shares 20 - 20
Trade debtors 1 - -
Other receivables 17 13 4
Cash and cash equivalents 524 2,117 1,750
___ _____ _____
566 2,134 1,778
______ ______ ______
Total Assets 11,674 11,933 11,295
Liabilities:
Current Liabilities
Trade and other payables (206) (95) (84)
___ ____ ___
Total Liabilities (206) (95) (84)
______ ______ ______
Net Assets 11,468 11,838 11,211
Capital and Reserves
Called up equity share capital 3,137 3,137 3,137
Share premium account 13,503 13,503 13,503
Warrant reserve 162 - 150
Retained earnings (5,334) (4,802) (5,579)
_____ _____ _____
Total Equity 11,468 11,838 11,211
Unaudited consolidated cash flow statement
for the six months ended 31 July 2013 (unaudited)
6 months 6 months 12 months
ended 31.7.13 ended 31.7.12 ended
GBP'000 GBP'000 31.1.13
GBP'000
Reconciliation of operating profit
to net cash flow from operating activities
Profit / (loss) for the period / year
before tax 245 (317) (1,094)
Adjustments for:
Share based payments 12 - 150
Share of loss of associates 14 - 148
Forex gains on associates (425) - -
Change in receivables (14) (13) (4)
Change in payables 122 40 29
___ ____ ____
Cash flows from operating activities (46) (290) (771)
Interest received - - -
Taxation refunded - - -
__ __ __
Net cash from operating activities - - -
Investing activities
Investment in associates (33) (9,779) (9,665)
Loans made to associate (1,285) - -
Dividends received from associate 138 - -
_____ _____ _____
Net cash used in investing activities (1,180) (9,779) (9,665)
Financing activities
Issue of share capital - 12,082 12,082
_____ _____ _____
Net cash used in financing activities - 12,082 12,082
Net (decrease)/increase in cash and
equivalents (1,226) 2,013 1,646
Cash and equivalents at beginning
of period/year 1,750 104 104
Cash and equivalents at end of period/year 524 2,117 1,750
NOTES TO THE INTERIM ACCOUNTS
1. Share based payments
On 23 June 2013, the Company awarded 109,544,786 warrants over
ordinary shares of 0.1 pence each ("Ordinary Shares") to Zafar
Karim. All of the Warrants have an exercise price of 0.5 pence each
and a 10 year exercise period from 23 June 2013. 16,431,718 of the
warrants were vested immediately. The remainder of the warrants
have various share price, milestone and time vesting
conditions.
2. Share of loss of associates
6 months 6 months 12 months
ended 31/7/13 ended 31/7/12 ended 31/1/13
GBP'000 GBP'000 GBP'000
Share of (loss) of YZJ Offshore (152) - (148)
Share of profit of MGR 138 - -
___ _ ____
(14) - (148)
The Company holds a 46.5% stake in YZJ Offshore and 49% of MGR.
YZJ Offshore reported an unaudited loss for the 6 months to 31 July
2013 of GBP328,000 and GBP152,000 represents Amedeo's share of YZJ
Offshore's loss (7 July 2012 to 31 January 2013: share of loss of
GBP148,000).
MGR reported a profit of GBP282,000 for the period to 31 July
2013, of which GBP138,000 represented Amedeo's share of MGR's
profit. MGR paid out all of its profits for the period under review
to shareholders, such that Amedeo received a dividend of GBP138,000
from MGR in late July 2013.
3. Profit per share
The basic and diluted profit per share for the period ended 31
July 2013 was 0.01p (2012: 0.06p). The calculation of profit per
share is based on the profit of GBP245,336 for the period ended 31
July 2013 (2012: GBP317,343 loss) and the weighted average number
of shares in issue during the period for calculating the basic
profit per share is 2,738,619,633 shares (2012: 575,848,847), and
for the diluted profit per share is 2,935,164,422.
4. Preparation of interim report
This report was approved by the Directors on 23 October
2013.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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